Learn > Budgeting

A budget isn’t just about what you spend.

A budget should look at what you have left to spend after you save.

So let’s have a look at what kind of budgeting you should do.

To save more.

The reason that a lot of people struggle to save money is simple.

If you look at your bank account as ‘money to spend’ you are your own worst enemy.

Of course, it is your money and you deserve to treat yourself, but if you want to save you need to change your mindset first.

So here are some tips on how to save money:

• Out of sight and out of mind - Open a separate savings account that you won’t be tempted to dip into. If you don’t see the money in your current account you are less likely to spend it!

• Pay yourself first - Every payday send £X to that account before you do anything else. What is left is now what you can spend in the month. You will find a way to survive on a smaller amount.

• Think long-term - If you want to save £10k you simply won’t save it in 2 months, but if you save over 20 months it would be far far easier to achieve that goal. Little and often is the key.

• Use cashback sites - They can be a great way to save some cash on purchases you were already making. Check out TopCashback here.*

  What am I spending?

  Nowadays, where contactless is King, it has become less apparent what our money is being spent on.

  But if your spending is really high there are a few ways to change this:

• Download a budgeting app - Our favourites are Emma or Snoop*

• Value vs cost - When you want to buy something, calculate how many hours of work the item would cost you. So if you earn £10 per hour and you want a £100 jumper. Is a jumper worth 10 hours of work?

Unsure what to do?

Sometimes, people just don’t know what to do with their money. This is normal.

You don’t have to save anything, as long as you are happy and can afford the life you are living then that’s great! Just make sure you are spending less than you are earning!

Benefits of budgeting.

• First of all, the future you now has more money!

• Secondly, it re-enforces positive behaviour and an awareness of your habits.

• Saving money can make you feel good.

Need a bit more help?

Send us an email and we can help you create and maintain a budget, as well as reaching your savings goals!

hello@thebankengine.com

Please note that the author of this page is a shareholder in Emma Technologies Limited.

*If you download Snoop via our links we may receive a commission in the process. All commissions are re-invested into The Bank Engine. Thank you for your continued support.